Why is Warren Buffett’s Hatred of Cryptocurrencies in Favor of this Market?
Have you heard about Warren Buffett’s recent remarks about Bitcoin and cryptocurrencies? Buffett believes that cryptocurrencies have no value and have just attracted frauds. These speeches have aroused many discussions and debates, and many proponents of the world of cryptocurrencies have considered it a serious insult to the wisdom of the investors which spend their intelligence, investment and time for digital trade. It is not the whole story though, because some other specialists believe that Warren Buffett’s new remarks not only not ruin Bitcoin and other cryptocurrencies’ reputation but finish the game in favor of them. However, how?
Warren Buffett’s Approach toward Technology and Investment
Among all those attempting to defend cryptocurrencies and what Buffet iniquitously attacked, some smart experts have focused on another sensitive point. These opportunists have greatly defended the world of cryptocurrencies through Warren Buffet’s method analysis and investment process and describing his economic approach to the issue of investment and trade implicatively and without any common turmoil. One of these experts believes that Warren Buffett’s look at the new digital phenomena is very outdated. According to Warren Buffett himself, during last years, he hadn’t accepted investing in two important companies of Silicon Valley; i.e., Amazon and Google. At the Berkshire annual convention in 2018, Buffets has confessed that he was highly repented not to invest in these two companies when they were in their primary stages. All these facts show that Warren Buffett doesn’t have enough goodwill to the world of digital trade.
In fact, it can be perceived that Buffet is seeking for specific companies and conditions for the investment. The companies and conditions which are a little alien to the new world of modern technology; in other words, investing in emerging technologies such as Blockchain and cryptocurrencies has not been defined in Berkshire’s investment model.
Analysis of Buffet’s Investment Models and Cryptocurrencies’ Honor
Professional analysts who have tried to describe and interpret Warren Buffet’s approaches, not only help remove the expected faults Buffet’s saying made in the world of cryptocurrencies, but they also charged him and introduced him as an investor who doesn’t accept investing in the new world and its reason is solely not understanding the new world. He himself acknowledged many times that what makes appealing the investment in a company like Apple is not its governance and dominance on the virtual world, social networks, etc. but its economic ecosystem and the equilibrium of balance sheets which makes investment feasible and interesting for Buffet.
Future of Cryptocurrencies
Lack of support on the part of Warren Buffett and the investors with the same level and belief from big giants like Amazon and Google has not influenced their growth. It is, therefore, a good signal for the presence of capacities which can bloom cryptocurrencies such as Bitcoin in the near future. Surely, Cryptocurrencies and technologies going to enter the market based on their orientation will fundamentally alter the world of investment and, who knows! Perhaps Buffet will a day surrender.